When Thorn and Watt met, their paths were very similar; they were both attending the University of Hull, and both had signed to independent record label Cherry Red Records as solo artists. Thorn was also a member of the trio Marine Girls, and Watt contributed a photograph to the cover of their first album, Lazy Ways. The pair each had solo album releases through Cherry Red Records: Thorn’s 1982 L.P. was A Distant Shore, an eight-track mini-album. Watt’s L.P. was entitled North Marine Drive.

They formed a duo and took their unusual name "Everything but the Girl" from the slogan of well-known Hull shop, 'Turners' Furniture', on Beverley Road (left). Earlier, this was a line from the 1937 film "Daughter of Shanghai", in reference to a bungled murder and theft of evidence: 'Did you get it?' 'Everything.' 'Everything but the girl!'

EBTG's debut single, a cover version of Cole Porter's "Night and Day", was released in June 1982. Following steady sales and exposure from the Pillows & Prayers compilation album, the single was re-issued in August 1983. Their first album was released in 1984 in the UK as Eden. 1984 also saw the UK release of singles "Mine", and "Native Land".

Their first UK hit single, "Each and Every One", had a jazzy sound, and EBTG was considered part of the jazz/pop movement known as sophisti-pop that included other British acts like Sade, Matt Bianco, and The Style Council, on whose Café Bleu album they guested. EBTG and Sade both worked with producer Robin Millar and engineers Ben Rogan and Mike Pela for their debut albums.

Although Eden was released in the UK, a different recording, Everything But the Girl, was released in the United States. The U.S. release contained about half the tracks from "Eden", along with some different tracks, including 'Mine' and 'Native Land'. The U.S. release balanced the bossa nova stylings of the British version with a more folk rock aesthetic, helping to establish the group's eclectic musicality.

Subsequent releases underscored EBTG's versatility and range. Their 1985 album Love Not Money featured a shimmering pop sound with jangly guitars, and included a cover version of The Pretenders' song "Kid" (not on the UK L.P.). The lyrics have strong social and political content. "Angel" comments upon child poverty and public attitudes towards it. "Sean" is a bitter comment on the Northern Ireland troubles. "Ugly Little Dreams" comments upon male attitudes to intelligent women and is dedicated to actress Frances Farmer. "Angel" was also released as a single in the UK.

The following year they released the self-produced Baby the Stars Shine Bright, an album of original pop songs recorded with an orchestra. They revealed the album's inspiration by their choices of B-sides for its single releases: one finds songs from Bacharach and Jimmy Webb on the 12" versions (as well as a cover of Patsy Cline's "I Fall to Pieces").

The first single was "Come On Home", followed by "Don't Leave Me Behind". While the jump from jazz to post-Smiths rock (with the release of Love Not Money) may have jarred some of their audience, the move to orchestral pop was much bolder and foretold the stylistic swap they'd make ten years later with Walking Wounded.

In 1988, EBTG released Idlewild, a collection of mature songs that began a trend towards middle-of-the-road, adult-orientated contemporary music. A cover version of Danny Whitten's "I Don't Want to Talk About It" (previously a hit by Rod Stewart) was released as a non-L.P. single; it achieved a high UK chart position and was later added to the album. Around this time, Lloyd Cole and the Commotions asked Tracey to contribute vocals to the song "Big Snake" on their final studio album Mainstream.

Tommy Lipuma produced the band’s 1990 album The Language of Life. The album, which featured the single "Driving", was another lush pop effort, but with a more contemporary sound. Jazz great Stan Getz contributed a tenor sax solo on the song "The Road". Next came Worldwide, and its single "Old Friends" in 1991. Worldwide's lyrics revolve around the themes of relationships, travel and personal memories.

1992 saw another UK hit single with the release of the Covers E.P. The lead track was "Love Is Strange", and the E.P. featured cover versions of Bruce Springsteen's "Tougher Than the Rest"; Cyndi Lauper's "Time after Time" and Elvis Costello's "Alison". These four tracks were included on the U.S.-only album Acoustic.

In 1993, EBTG released a cover version of Paul Simon's "The Only Living Boy in New York" as a single in the UK.

The duo were forced to curtail recording and touring for a few years when Watt contracted Churg-Strauss syndrome, an autoimmune disease (he subsequently wrote a memoir, Patient, about his ordeal). The next work of original music was not until 1994, when EBTG released Amplified Heart. Although most of the music was still acoustic-based, it had a much more contemporary feel.

Producer Todd Terry remixed the track "Missing", and when EBTG released the remix as a single, it became a huge international hit. It hit the top of nearly every chart around the world, and charted in the U.S., a feat that had previously eluded the band. The track reached number two and stayed in the U.S. Billboard Hot 100 for well over a year.

The success of that track, along with a collaboration Thorn did with the bands Massive Attack and Deep Dish, influenced them and helped usher the band into a more electronic sound. Having completed contractual obligations to WEA, they were free to shop their recordings and had full ownership of their future recorded works.

They signed licensing deals with Virgin Records for the United Kingdom and Europe, and Atlantic Records for the United States and Canada. Their subsequent albums Walking Wounded and Temperamental, showed the band's musical progress as well as established Ben Watt as a notable dance music producer. Between the two albums he produced "Stars All Seem To Weep" for Beth Orton, and it immediately garnered attention. This would bolster his growing reputation as a D.J. and producer.